The Reserve Bank of India (RBI) is India’s central banking and monetary authority. RBI regulates loans offered by banks and nonbanking financial institution.
Mobile technology is subject to licensing under FEMA (Foreign Exchange Management Act, 1999). Any cross border payment service issued by a payments bank becomes subject to FEMA authorisations and RBI approvals. As such, the current Paytm Wallet cannot be used for overseas payments, according to 4-traders.com.
Once Paytms payments bank commences its operations, all the regulations will be under scrutiny of RBI and FEMA authorizations (Foreign Exchange Management Act, 1999). Prepaid forex cards also get specific limited approvals before use outside India.
Regarding Paytm wallet usage for Uber rides, Alibaba announced that further developments in this case will be released.
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